Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
The Junta of Extremadura, in central-western Spain, granted Australia’s Infinity Lithium Corporation (ASX: INF) a key exploration permit required to progress towards an exploitation concession at the San José/ Valdeflorez lithium project.
Through Tecnología Extremeña del Litio, a joint venture it formed with Valoriza Minería, Infinity Lithium was awarded an investigation permit for an area known as Ampliación a Valdeflorez (PIAV). The permit provides the legal basis for TEL to retain tenure of the area, and the right to explore the grounds.
The fully integrated San José/ Valdeflorez project can potentially produce battery-grade lithium hydroxide for up to three decades to supply the European market
Ampliación a Valdeflorez is to be joined by the Investigation Permit Valdeflórez (PIV) and, together, they will make up the San José/ Valdeflorez lithium project.
Once the Junta of Extremadura and the Extremadura Department of Mines grant the PIV, the company can submit an environmental impact assessment and an application for a derived exploitation concession.
“The granting of Investigation Permit Ampliación a Valdeflórez is another positive development in both the progression of San José as the company moves forward towards lodgement of the mining licence application, and as a potential catalyst for other investment activities in the regional value chain,” Infinity’s managing director, Ryan Parkin, said in a media statement.
Located near the town of Cáceres, the San José/ Valdeflorez hard-rock lithium project is expected to be developed by open-pit methods with the ore treated and refined on-site.
The project terrain includes the PIAV and PIV areas. The beneficiation plant and downstream lithium chemical conversion facilities will be located in the PIAV area, using feedstock from the lithium mica ore contained within the PIV.
The project’s JORC resource has been estimated at 111.2 Mt, and mine life is expected to be 19 years.
According to Infinity, the fully integrated project can potentially produce battery-grade lithium hydroxide for up to three decades to supply the European market.
Comments
Ishmael
The permit is only for 35% of the land required for the mine, as the other 65% is protected by law. As it is facing increasing protests, I would not spend any money on this project, it will not go on unles the company sets a battery factory in the region.